We are just at the beginning of mass shutdowns here in the US. The cancellations of events like March Madness are billion dollar losses. If less people are going out that hurts the service industry and much of the people there live paycheck to paycheck. Flight cancellations are costing airlines deeply and expect to see layoffs. Medical providers are already concerned about shortages and looking to tap strategic reserves for emergency supplies. One thing that is so far cushioning us is that with the runup to the Trade War many companies increased their stockpiles of parts and products from the PRC (one reason why the trade gap rose during the first two years of Trump's Presidency). How long that last depends on how long this crisis last. Also consider trade is a two way street and we saw how retaliatory tariffs by the PRC hurt our agriculture sector. While we import a lot we also export a lot and as other countries like the PRC and in Europe's economy contract we will be selling less to them also. This crisis gives the PRC a convenient excuse to backtrack on the phase one agreement by arguing that they can't afford to buy as much US goods as promised.
Yep. We're probably going to see another big selloff tomorrow morning. I don't think the recent selloffs are an aberration with surge Friday the norm. There are real economic consequences to this crisis.
So the fed rate is what now? How are we going to fight off this recession? Trillion dollar deficit because of trump’s mismanagement the last three years. How do we go from Obama’s 500 billion dollar deficit in 2015 to a trillion dollars in today’s red hot economy. This is criminal. Trump eroded the ability, over last three years, to fight off this recession. What can the government do now? What is fed rate at now? What is deficit now?
Should Dump be voted out, the South Tea Party Shall Rrrriiiseth Again and hold Sleepy Joe Biden accountable for his 1.5 trillion dollar/year budget as an example of LIBTARD WASTE.
I have been saying this along with many other people much more knowledgeable about the economy than me. That the tools that we would normally use to fight a downturn (tax cuts, interest cuts) are not going to be as effective because they have squandered to juice the economy. Further if people aren't spending from going out a tax cut isn't going to matter if you don't have revenue.
I don't see any topics covering the increasing number of bankruptcies that will be declared by the uninsured that get sick from this virus and require hospital stays once this dies down.
“The Fed blasted its monetary bazooka for sure,” said Peter Boockvar, chief investment officer at Bleakley Advisory Group. "This better work because I don’t know what they have left and no amount of money raining from the sky will cure this virus. Only time and medicine will.”
Trillion dollar tax cut for the super rich, Trillion dollar war for GWB. It's not just Trump who enacted these disastrous policies. Now we need to spend another trillion at least to try to minimize the recession. Not sure where the money will come from or if we should even care. Hopefully we get some green new deal stuff out of it.
This is where they play coy and clutch their pearls while saying, "But how will we pay for it?" What is that ... crickets.. crickets.
